Berlin, Germany
Portfolio Ins
- Location
- Germany
Opportunity
Acquisition of 12 properties built between 1970 and 1994, comprising 467 residential units and 25 commercial units across approximately 27,327 sq m.
Delivery
Targeted refurbishment, systematic rent improvement, operating-cost reductions and institutional-standard property management were implemented as part of the wider Berlin platform.
Outcome
The assets formed part of the 3,532-unit Berlin aggregation and repositioning platform, which was sold in 2019.
Acquisition of 12 properties built 1970-1994, comprising 467 multi-family residential units and 25 commercial units across 27,327 sqm.
Rent was improved through targeted refurbishment investments, systematic rent improvements, operating cost reductions, institutional standard property management implementation and other asset management strategies.
Berlin’s housing market was at the time characterised by 85% rental apartments. Prices for multi-family apartment buildings in prime locations were 30-50% below replacement cost. Average rent level as percentage of household income was 20-25%, well-below other major German cities, suppressing supply. On the other hand, demand was stimulated by continued steep increase in population, jobs and number of households.
The portfolio was acquired in July 2015 in a joint venture with an international Sovereign Wealth Fund. The joint venture originated, aggregated, repositioned, refurbished and managed 3,532 rental apartments across 158 properties in the greater Berlin area and nearby cities. More than 1,000 units were located in Berlin’s central district Mitte. The portfolio was sold in 2019.